MelodieWarner

Tekelec
TKLC
agreed to be acquired for about $761 million in cash by a consortium led by Siris Capital Group LLC, and also reported it swung to a third-quarter profit.

The deal is expected to close during the first quarter. Each Tekelec share will be acquired for $11, an 11% premium to Friday's $9.90 close. The stock has fallen 27% over the past year.

The provider of communications network software said its management team will remain in place, and Merle Gilmore, former president of Motorola's Communications Enterprise and chairman of Airvana Network Solutions Inc., will serve as Tekelec's executive chairman following the closing.

Siris Capital focuses on the technology, telecommunications and health-care industries. The investor group also includes affiliates of ComVest Group, GSO Capital Partners LP, Sankaty Advisors LLC, ZelnickMedia and other Siris limited partners and affiliates.

As it forecast last month, the company raised its full-year earnings estimate to 36 cents to 43 cents a share on revenue of $395 million to $410 million from its prior forecast of 22 cents to 32 on revenue of $360 million to $400 million.

Tekelec reported a profit of $762,000, or 1 cent a share, compared with a loss of $134,000, or less than a penny a share, a year earlier. Excluding items such as restructuring charges, earnings rose to 19 cents from 15 cents. Revenue dropped 2% to $106.2 million.

The company's October projection was per-share earnings of 16 cents to 20 cents on revenue of $103 million to $106 million, above analysts views at the time.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.